ADP

1. Amanda Brunssen ADP

2. Economic Overview • U.S. economy grew 2% during the 3rd quarter • Stronger consumer activity and a surge in federal government spending • Gross Domestic product has expanded for 13 consecutive quarters • Government spending in the 3rd quarter contributed to growth for the first time in more than two years

3. Economic Overview Cont. • Drop in exports, contracted for the first time in more than 3 years and weaker business spending • Slower growth ahead by disappointing earnings and profit warnings along with concerns about U.S. tax and spending policies • Consumers will dial back spending after the presidential election • “fiscal cliff” package of spending cuts and tax increases to begin in January

4. Summary • “Automatic Data Processing, Inc. provides business outsourcing solutions. The company operates in three segments: • Employer Services • Provides a range of human resource (HR) information, payroll processing, time and labor management, and tax and benefits administration solutions and services, including traditional and Web-based outsourcing solutions to employers. Its solutions assist employers to recruit, staff, manage, pay, and retain their employees. • Professional Employer Organization (PEO) Services • Provides employment administration outsourcing solutions comprising payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers’ compensation coverage, and other supplemental benefits for employees • Dealer Services. • Offers integrated dealer management systems, digital marketing solutions, and other business management solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment. It also provides integrated applications for various department and functional areas of the dealership, such as customer relationship management applications, front-end sales and marketing/advertising solutions, and IP telephony phone systems; and computer hardware, hardware maintenance services, software support, system design, and network consulting services, as well as designs, establishes, and maintains communications networks for its dealership clients. In addition, this segment offers digital marketing solutions and services, including Websites, sales leads, email, search, display, and social media marketing and management services to the automotive industry”

5. ADP • Founded in 1949 and is headquartered in Roseland, New Jersey • Mission: Power organizations with insightful solutions that drive business success • Vision: Be the world’s authority on helping organization focus on what matter

6. ADP • Values: • Integrity is Everything • Insightful Expertise • Service Excellence • Inspiring Innovation • Each person counts • Results-driven • Social responsibility

7. Leadership • Carlos A. Rodriguez • President and Chief Executive Officer • Named in November 2011 • Mr. Rodriguez has been with ADP since 1999, most recently as President and Chief Operating Officer since May 2011, and previously as President of National Account Services and Employer Services International. He joined ADP through its acquisition of Vincam, where he served initially as CFO for a short period before becoming President of ADP TotalSourceSM. Under his leadership, TotalSourceSM became the fastest growing, as well as the largest, Professional Employer Organization (PEO) in the industry. • Mr. Rodriguez then spent several years as President of ADP's Small Business Services (SBS), which included ADP's small business payroll services, ADP TotalSourceSM and ADP Retirement Services. Under his leadership, SBS launched "RUN Powered by ADP®" payroll management service, which has become one of ADP's fastest growing product platforms. • Mr. Rodriguez holds master of business administration and bachelor of arts degrees from Harvard University. In addition to his work at ADP, Mr. Rodriguez serves on the Boards of ADP, Hubbell Inc. and A-T Children's Project. Also, he is a member of World 50, Inc.

8. Leadership • Mark D. Benjamin • President, Employer Services International • Appointed in July 2011 • After joining ADP in 1992 as a payroll sales representative, Mr. Benjamin progressed rapidly within sales and sales leadership roles to become a General Manager in 1999. Over the next several years, his responsibilities included serving as Senior Vice President of service and sales roles for TotalSourceSM as well as the overall leadership of the unit in 2007. • Mr. Benjamin holds a bachelor's degree in international finance and marketing from the University of Miami. • Previously, Mr. Benjamin was Senior Vice President of ADP's Small Business Services division's service and operations, including its TotalSourceSM and Resource® offerings. He had responsibility for 350,000 clients serviced by 3,000 associates and revenues of $1.95 billion.

9. Leadership • Steve J. Anenen • President, Dealer Services Group • Promoted in August 2004, been in company for 36 years • Prior to this, he held the position of Senior Vice President, North America Transaction Systems, ADP Dealer Services North America. In this role, which he held for six years, he was responsible for sales, implementation and support of ADP Dealer Services’ Major Markets organization, which comprises over 80% of the dealer network in North America. Prior to this, Mr. Anenen was Vice President of the Major Markets segment of ADP Dealer Services and served as General Manager of Dealer Services’ Chicago region, where he was Crystal Award recipient for top region of the year five times. • Mr. Anenen has held positions of increasing responsibility during his 36-year tenure with ADP. Prior to joining Dealer Services, he held positions of Director of Client Relations with the company’s Employer Services group, as well as Branch Manager of the Manufacturing/Wholesale Distribution Services division. • Mr. Anenen is a graduate of Northwestern University and did graduate work at the University of Notre Dame.

10. Leadership • Christopher R. Reidy • Corporate Vice President and CFO • Since 2006 • Mr. Reidy came to ADP from AT&T where he spent more than nine years in positions of increasing responsibility in their financial organization. During his tenure with AT&T he served as Controller and Chief Accounting Officer, was CFO for their Consumer and Business Services Divisions, and led the Business Planning and Analysis function. Prior to AT&T, Mr. Reidy was the Chief Financial Officer and Information Technology Head at the National Basketball Association, and was an audit partner at Deloitte & Touche. • Chris is a CPA and holds a bachelor of science degree in accounting from St. Francis College and a master of business administration degree from the Harvard Business School. He is also a member of the Board of Directors for Jersey Battered Women’s Services.

11. Success Factors • Products Leadership • ADP is committed to PRODUCT LEADERSHIP - delivering the best solutions to all of our markets ahead of the competition on a consistent basis. • We know that new products and services are essential to business growth. They help us to better meet the needs of those we serve, as we attract new clients and grow and strengthen our relationship with our existing clients. Our products and services provide tangible solutions that differentiate us from our competitors. • ADP's product offerings include Web-based solutions throughout all of our businesses, in addition to traditional service bureau offerings. • We are leveraging the Internet to deliver solutions to an ever-expanding range of prospects. • ADP product leadership, like World Class Service, not only requires a sustained, enterprise-wide commitment from us, but also is one of the key elements for our future success.

12. Success Factors • World Class Service • ADP is committed to WORLD CLASS SERVICE. It is at the core of our service culture and will always be the heart of our relationship with our clients. • We define World Class Service as an ongoing journey toward service excellence. World Class Service challenges us to consistently reset the high bar of our performance levels to meet or exceed the expectations of an ever-more-competitive marketplace. • ADP's commitment to World Class Service begins with the first impression we make on a sales call...how smoothly we install our systems...and how effectively our solutions work. It is a combination of everything we do to create a client relationship - and make it flourish. • We measure the success of our commitment to World Class Service through client satisfaction scores and client retention rates. Those two key metrics have historically reflected how well we serve our clients. • What differentiates ADP from the competition? • We believe that service demands increasingly higher levels of excellence - and there is no level of service today that cannot be further improved tomorrow.

13. Success Factors • Employer of Choice • Outstanding associates help ADP to succeed. • ADP's continued success depends on our ability to attract, motivate, empower, and retain exceptionally talented individuals that reflect the diverse business environments we serve. • * We want to attract and retain associates who have the skills, shared beliefs, and dedication to service excellence that can help us compete - and continue to win - in both the local and global marketplace. • * We especially need to recruit and retain associates with specialized skills that are essential to succeed in the modern, global business environment. • That's why ADP has made a long-term commitment and investment in becoming an EMPLOYER OF CHOICE - creating a culture that contributes to ever-increasing associate satisfaction levels. • We offer our associates challenges, opportunities for advancement, competitive compensation and benefits, and training and development in a fast-paced business environment that is also sensitive to work-family and flexible schedule needs.Our goal is to be the clear Employer of Choice for our current and future associates.

14. Recent Awards and Achievements • Fortune’s 2012 list of America’s Most Admired Companies • Forbes 2012 list of World’s Most innovative Companies • Computerworld’s List of 100 Best Places to Work in IT 2012 • 2012 Working Mother Award • US Companies with Triple-A Credit Rating • InformationWeek 500 2011 List • 2011 Training Magazine Award • 2012 DiversityInc Top 50 Companies for Diversity • 2011 Diversity MBA Magazine: “50 Out Front for Diversity Leadership: Best Places for Diverse Managers to Work” • 2012 Corporate Equality Index (100% rating) • 2011 Garden State Equality Company of the Year

15. Community Initiatives • Community Outreach-Making a Difference • Workplace Giving Program/Matching Gift Program • Workplace Partnership for Life • Military Partners • American Heart Association • World Class Community Service Program • Special Olympics • Chicago Cares • United Way • Community Health Charities • Susan G. Koman for the Cure • March of dimes • Habitat for Humanity • American Cancer Society • Disaster Relief • Feeding America

16. Workforce Now • http://www.youtube.com/watch?v=3DEPtwcPLfY&feature=relmfu

17. In the news • "We are now among the largest HR system providers in the marketplace," says Michael Capone, ADP's chief information officer. It's a message he admits the company could do a better job of promoting. • While everyone knows that ADP is a leader in the payroll world, many don't realize it has offered cloud-based HR software products for about a decade that support recruiting, talent management, time and attendance, and benefits administration, along with payroll. Its HR offerings include Workforce Now for companies with fewer than 1,000 employees, GlobalView for multinational organizations, and Vantage HCM, which it launched last October for companies with more than 1,000 employees. Most of ADP's tens of thousands of HR software customers up to now have been midsize firms, though the number of larger firms is increasing since the launch of Vantage.

19. Strengths • Strong market position • Client retention capabilities • Still innovating • http://www.youtube.com/watch?v=jLy29Di3fNw

20. Weaknesses • Low margins compared to competitor • Large Market Cap

21. Opportunities • More small and medium scale businesses • Cloud-based HR software products

22. Threats • Intense competition • Economic slowdown

23. Competition • Paychex • Founded in 1971 by B. Thomas Golisano • Make payroll outsourcing easy and affordable for small businesses • Services include payroll processing, retirement services, insurance, and a fully outsourced human resource solution

24. Competition • Paychex, Inc. provides payroll, human resource, and benefits outsourcing solutions for small to medium sized businesses. • Payroll processing • Calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients’ payroll obligations. The company also offers • Payroll tax administration services; employee payment services; and regulatory compliance services • New-hire reporting and garnishment processing. In addition, it provides human resource outsourcing services, such as paychex HR solutions comprising payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained human resource representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. • Insurance services for property and casualty coverage • Workers’ compensation, business-owner policies, commercial auto, and health and benefits coverage, including health, dental, vision, and life; eservices, an online human resource administration software products for employee benefits management and administration, and time and attendance solutions; and other human resource services and products, such as employee handbooks, management manuals, and personnel and required regulatory forms.

25. Competition Cont. • Martin Mucci • President and CEO • Efrain Rivera • Senior Vice President, CFO, and Treasurer • Mark Bottini • Senior Vice President, Sales • Michael Gioja • Senior Vice President, IT, Product Development and Development • Andrew Childs • Vice President, Marketing

26. Competition • P/E: 21.22 20.53 • EPS: $1.52 2.82 • Price: $32.33 $58.14 • High/Low: 27.11-$34.70 $47.60-59.96 • Dividend: $1.32 $1.58

27. CANSLIM Debt/Equity Industry Debt/Equity

28. CANSLIM

29. Ratios 2011 2010 2009 Industry Quick Ratio ROA ROE Profit Margin Market to Book

30. Industry Averages • Current Ratio: 2.1 • Quick: 0.3 • Inventory Turnover: 7.2 • Total Asset Turnover: 0.8 • Profit Margin: 8.16% • ROA: -22.1% • ROE: 8.2% • P/E: 29.5 • Market to Book 4.57

31. Price Estimates • Yahoo: $68 • Wall Street Journal: $68 • $66.90

32. 3 Main Points • One of the last four AAA-rated companies in the United States • What are the other 3 companies? • Leader • Earnings coming out tomorrow

33. Recommendation • Buy 100 Shares • Around $5,783